Is Jacobs Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Jacobs Solutions, Inc. has moved from fair to very expensive. This indicates that the company is overvalued based on its current financial metrics. The P/E ratio stands at 29, while the industry average is not provided, but peer comparisons show that Jacobs is more expensive than GoDaddy, which has a P/E of 24.92. Additionally, the EV to EBITDA ratio is 13.59, which is lower than its peer MSCI, Inc. at 42.54, but still suggests a high valuation relative to its earnings potential.
In terms of returns, Jacobs Solutions has performed well over the short term, with a year-to-date return of 17.49% compared to the S&P 500's 13.30%. However, over longer periods, such as the 3-year and 5-year returns, Jacobs has underperformed relative to the S&P 500, with returns of 66.01% and 89.29% respectively, compared to the benchmark's 81.19% and 91.29%. Overall, Jacobs Solutions, Inc. appears to be overvalued given its high valuation ratios and the mixed performance against its peers and the broader market.